How Low Can It Go?
Is Microsoft really done with Yahoo?
Microsoft Corp. is no longer interested in buying all of Yahoo Inc., CEO Steve Ballmer said Wednesday, though he told shareholders that the company would still be “very open” to a collaboration on Internet search. His comments sent Yahoo shares diving by 14 percent.
“Let me be clear,” Ballmer said at Microsoft’s annual shareholder meeting. “We are done with all acquisition discussions with Yahoo.”
Maybe it’s just a ploy to get the price even lower so they can come in and gobble them up.
When Microsoft made their original offer, they were willing to pay $33 per share for the company. Now, it’s not even worth $10. Great move on their part rejecting all rumors that they may still be interested. They might be able to get it for $7. What do you think?
Sphere: Related ContentA $7 Billion Slice Of Pie
If Bank of America had not been awarded $15 billion from the federal government, would they have gone through with the investment in CCBC?
They claim they are not funding the purchase with any of the TARP money, and that’s probably true, but I can’t help but think they might not have had $7 billion on hand to make the investment if they didn’t accept $15 billion with the other hand.
Bank of America Corp. will pay about $7 billion to almost double its three-year-old stake in China Construction Bank Corp., three weeks after being awarded $15 billion from the U.S. government to thaw frozen credit markets.
Bank of America, which is buying Merrill Lynch & Co., will boost the stake in China’s No. 2 bank to 19.13 percent from 10.8 percent, the Charlotte, North Carolina-based lender said today. It will buy shares from China SAFE Investments Ltd., a state investment arm that is the Beijing-based bank’s biggest stakeholder.
Bank of America isn’t funding the purchase with proceeds from the government’s Troubled Asset Relief Program, or TARP, said spokesman Scott Silvestri. Merrill received $10 billion through the Treasury’s $250 billion bank-rescue package.
Why didn’t they use their $7 billion to shore up their business first and accept just $8 billion from the government? It doesn’t matter which side it comes from, the pie tastes the same no matter how you slice it.
Sphere: Related ContentThe Best Denial Money Can Buy
I don’t care what your market share is, or how good you are doing compared to your competitors. Your investors are off their rockers if they had no idea you were going to be hit by the economic slowdown.
Best Buy (BBY) terrified investors on Nov. 12 with bad news indeed. The electronics retailer said it sees consumers sharply cutting back their spending. Even worse, the well-respected executives at Best Buy seem to have little idea how bad conditions could get this holiday season.
I believe they call this denial.
Sphere: Related ContentFaulting The Election?
Wait. Two weeks ago, stocks fell. Was that because of the economy or the election? Last week, the same thing happened. Now, the day after the United States of America chose it’s 44th President, stocks are falling because of the economy rather than the historic presidential election?
Stocks fell on Wednesday a as worries about a weakening global economy returned to center stage a day after the historic presidential election .
Stocks earlier pared losses after data that the vast services sector shrank sharply but less than analysts had feared.
Way to spin it guys. Everything until now was the fault of the election. I got it.
Sphere: Related ContentCircuit City Short Circuits
More bad news from the economic front.
Circuit City Stores Inc is closing 155 stores and considering all options to restructure its business as the consumer electronics retailer struggles with a deteriorating liquidity position and tighter credit conditions from vendors.
Circuit City said it would also cut 17 percent of its domestic workforce as part of the store closings.
I read the entire article, and I feel the economic downturn has just hastened the inevitable. The last time I walked into our local Circuit City, the sales staff was rude, the place was too noisy, and the prices were much higher than their competition just half a mile away. It’s no wonder vendors don’t want to work with them, I don’t want to buy from them.
Sphere: Related ContentStill Waiting…
That was some bailout, wasn’t it?
Sphere: Related ContentStocks closed at their lowest levels in 5-1/2 years on Monday, extending a global sell-off as worry about the severity of a global recession and the bleak outlook for profits gripped investors.
Trading was volatile and volume was light, with stocks falling sharply in the last half hour of trading. With just four days left in October, the S&P 500 is on track for its worst month ever in the post-World War Two period.
The Cost Of The Sandler Damage
I was reading this article yesterday in the New York Times about Wachovia’s third quarter loss of $23.9 billion.
The Wachovia Corporation announced a $23.9 billion third-quarter loss on Wednesday as it prepared to be taken over by Wells Fargo.
The bank took an $18.7 billion charge to write down the value of good will and wrote off $6.6 billion in credit losses tied largely to its disastrous purchase of Golden West Financial in 2006. And the red ink is unlikely to end soon.
Golden West is the firm that Herbert and Marion Sandler owned. The Sandlers were mocked on Saturday Night Live a couple weeks ago in a skit about the Wall Street bailout.
Just think, if it wasn’t for those two people, Wachovia wouldn’t have been in trouble, and they wouldn’t have had to sell out to Wells Fargo.
Interesting.
Sphere: Related ContentFeds Bailout Wall Street, Banks, And Now Mutual Funds
Here they go again, another bailout is on the horizon. This makes what? Four, or five?
The US Federal Reserve has offered help to troubled money market mutual funds, as governments announced fresh aid to struggling banks amid signs of thawing credit in the money markets.
In its latest response to recent global financial turmoil, the Federal Reserve announced Tuesday it was putting up up to 540 billion dollars for purchases of highly rated short-term debt, including certificates of deposit and commercial paper, from money market investors.
The market for these assets, which in normal times are considered safe investments offering modest returns, has frozen up in recent weeks as the global financial crisis worsened .
My only question is, where is this money coming from? Apparently it’s not part of any of the other bailouts, so, how does that work?
Oh, I know, you’ll tell me it’s not costing us anything, as the money is being loaned to help in the “shortage”. My experience tells me that anytime the Federal Reserve is involved, it costs us money.
Sphere: Related ContentThose Buckets Are Expensive
The President announced that the government will be buying stock in U.S. banks. Oh joy. The passage of the $700 bailout bill was the first step toward socialism, and this is the second.
Blackstone Group Chief Executive Stephen Schwarzman said on Tuesday the injection of government cash into U.S. banks, alongside similar measures around the world, could break the back of the credit crisis.
…
“We will be looking today to an absolute sea change in the global financial system in terms of liquidity,” Schwarzman told a packed room at the Super Return private equity conference in Dubai. This could be the action that “breaks the back of the credit crisis,” he said.
He was referring to plans by the U.S. government to inject $250 billion into the nation’s banks, following similar action in Europe, to revive money markets and try to stave off global recession.
Schwarzman said there was now “absolutely no reason” why anyone would have concerns or fears about putting money into the U.S. financial system.
Nationalized banking isn’t going to be the walk in the park they want you to think it is.
I wonder how many steps there are before you reach socialism. Can we manage to turn around before we get there? I think I forgot my toothbrush.
Sphere: Related ContentWaMu Faces Extinction
What a turbulent week it has been on Wall Street. Lehmen Brothers filed bankruptcy, AIG needed a bailout, and now it seems my old pals at Washington Mutual are in trouble.
Washington Mutual Inc (WM.N), the giant U.S. savings and loan beleaguered by mortgage losses, has put itself up for sale, sources familiar with the matter said on Wednesday.
The Seattle-based thrift has hired Goldman Sachs & Co and Morgan Stanley to run an auction and potential suitors include Citigroup Inc (C.N), HSBC Holdings Plc (HSBA.L), JPMorgan Chase & Co (JPM.N) and Wells Fargo & Co (WFC.N), one source said.
A sale is neither imminent nor guaranteed and the thrift is exploring other options, a second source said.
I bet, if WaMu actually took time to work with their customers, they wouldn’t need to put themselves up for sale. If they actually paid attention to their customers, some of us might give a shit if their company lived or died.
As you can tell, I really don’t care.